CF ACQUISITION(CFFE) - 2024 Q4 - Annual Report

Risks and Uncertainties - The company is subject to numerous risks and uncertainties, including the uncertainty of achieving continued profitability [17] - The company may need to raise debt or equity financing, which may not be available on favorable terms [18] - The company faces significant competition, including from clients who may choose to perform business processes in-house [22] - Cybersecurity issues could result in risks to the company's systems and services [32] - The invasion of Ukraine by Russia and the resulting sanctions have caused significant economic disruption [30] Financial Performance and Debt - The company's revenues are highly dependent on the banking and finance industries, and any decrease in demand could reduce revenues [24] - As of December 31, 2024, the company had $28.9 million of debt outstanding with a weighted average interest rate of 6.29% [408] - As of December 31, 2023, the company had $16.6 million of debt outstanding with a weighted average interest rate of 8.25% [409] - A 1.0% increase or decrease in the assumed weighted average interest rate would not have a material impact on the results of operations for both years [408][409] Operational Challenges - The company relies on third-party services, which could cause errors or failures that adversely affect its business [26] - The company incurs significant increased expenses and administrative burdens as a result of being a public company [34] - The company may not be able to comply with the continued listing standards of Nasdaq [35] Market and Economic Conditions - The company is exposed to foreign currency risks from normal business operations, including transaction gains and losses associated with intercompany loans and transactions in currencies other than the functional currency [410] - The company does not use derivatives for trading purposes or speculative activity, focusing instead on managing market risks from interest rates and foreign currency exchange rates [411] - The company does not believe inflation has materially affected its business, but significant inflationary pressures could harm its financial condition if costs cannot be offset [412] Dividend Policy - The company does not expect to declare any dividends in the foreseeable future [33]